SMEs in UAE need more funding support
By Sarah Algethami Published 17:52 April 28, 2013
Suad Al Halwachi, director at Education Zone, applied for a bank loan to grow her business but it was rejected. She then received her loan in 2010 from a loan shark within 10 days with a 21 to 22 per cent interest rate.
Suad’s loan was rejected even though she had her financial audited statements in order and a good track record, she said, adding that “business was doing well-hence the expansion”. When asked why her loan was rejected, she said that the bank classified her business as “high risk”.
Suad added that some SMEs she is aware of have had their loans rejected and have since left the country to set up their business elsewhere, after receiving loans from there.